A week of stagnation?

When prepare for the coming week, the first question one has to ask is what could make this market go higher when trading resume on Monday? And the answer is obviously very un-promising :)

On the economic front, there are more anticipations of recession now than last week, even though it is also said that no recession has ever been predicated correctly before, the mere utterer of the word recession could put the trader on defense.

And the savior of the market are gone too. The inflation news, on the one hand vindicates the FED\'s decision to cut only 25 bsp, it also put the FED in a bind as what to do next. The bond obviously put the prospect of diminished rate cut into its price ( a fact I have noted since last week).

What about earning news from Wall Street firms. well, even if they comes as not as bad as people expected, it does not assuage the worries about this subprime mess. in other word, it may prevent financial go even further down, but it lack the credibility to power the market higher

What a dark picture that is.. it seems like hopeless ....

And that lies the hope :)

The title of streetwise column on Barrons is an army of worries to the rescue. it certainly re-affirm the wisdom that when everyone is selling , it is the time to buy.

So, the question is whether the selling is done? probably not yet in my point of view. Thus, proceed with caution when buy, this crdit cunch is not over until it is over...